How Municipalities Can Address Housing Affordability Through Code and Zoning Reform
Historical patterns of land use policy and zoning have either disincentivized or disallowed production of various housing types and price points. Many U.S. cities have zoned the majority of their residential land for single-family detached housing, which not is not the right choice for everyone. Code and zoning reform can help increase home supply and address the nation’s housing affordability crisis.
NAHB’s new resource, Model Housing and Land Development Code Guide, includes information about how updating housing and land development code can have real impacts on the costs and availability of housing. NAHB members in communities considering these changes can share this document with local officials and housing advocates to help educate them on the value of code and zoning reform.
Making the approval and review processes as efficient as possible should be a top priority. Lengthy and unpredictable processes add costs to housing development and hurt affordability. One potential solution to address this issue is to enact a housing approval shot-clock — for example a 60-day limit on issuing approval or denial for each housing proposal. Even better, cities such as Sacramento are now issuing policy that makes certain housing types by-right or able to bypass these entitlement processes all together. Another expediating strategy is to release preapproved plans for housing types.
The Model Housing and Land Development Code Guide also discusses the importance of legalizing and incentivizing a greater variety of housing types, including missing middle housing. Removing excessive and burdensome regulation that artificially raises the cost to build and sell homes should be closely examined. Often these come in the form of architectural design standards that have little to do with the safety, health and welfare basis of zoning. The guide provides good examples of pro-housing, sensible codes from across the United States.
Learn more through NAHB’s Land Use 101 toolkit.
Latest from NAHBNow
A key duty of owners and managers of residential construction firms is to create an environment where everyone is empowered to honestly discuss jobsite safety.
The Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC) have proposed targeted revisions to their Community Reinvestment Act (CRA) regulations.
Latest Economic News
Existing home sales continued to slow in July as record-high home prices and elevated mortgage rates weighed on buyers. Mortgage rates resumed an upward trend after the ceasefire ended in early July.
Demand for all types of residential mortgages was weaker, while lending standards for most were essentially unchanged in the second quarter of 2026, according to the recent release of the Senior Loan Officer Opinion Survey (SLOOS).
Wage growth for residential building workers continued to lose momentum in the second quarter of 2026, reflecting softer housing construction activity and weaker labor demand. According to the latest data from the U.S. Bureau of Labor Statistics, both nominal and inflation-adjusted wages have weakened further, extending the cooling trend that emerged after the strong wage gains of the post-pandemic period.